David Price enters administration
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TYNE AND Wear-based David Price Food Services has gone into administration just over a year after entering a company voluntary arrangement (CVA).
The chilled haulage division of the business stopped trading on Monday— with 109 employees made redundant — but its cold storage division, which has facilities in North Shields and Glasgow, has been sold to Ice Company Distribution, saving 29 jobs.
The haulage operations were based at six depots in Bristol, Bury St Edmunds, Glasgow, Gillingham,Wrexham and South Kirkby in Yorkshire. Five employees at the head office in Wallsend will be retained in the short term to assist with the administration.
Howard Smith and Mark Firmin of KPMG's restructuring practice have been appointed as joint administrators. They said the collapse was due to a period of poor trading and an increased cost base, primarily because of rising fuel and utilities costs. On 5 September 2012, David Price Food Services entered a CVA based on terms of paying 38p in the pound on debts of £2.1m owed to unsecured creditors.